Financial development

Alma Media’s revenue remained almost on par with last year’s revenue. The revenue from the print media declined, as the economy in Finland continued to be weak. However, Alma Media’s digital recruitment service business in Eastern Central Europe grew vigorously throughout the year, and its profitability remained excellent. In the final quarter of 2014, recruitment business outside Finland grew by 25,4 per cent.

Revenue

In 2014 Alma Media’s revenue declined by 1.6% from the previous year to MEUR 295.4 (300.2). The company’s investment in digital development paid off. The Group’s revenue from digital products and services increased 12 per cent to MEUR 94,5. Digital advertising sales grew by 9.4 per cent in 2014 and nearly reached the level of print media advertising sales. Digital products and services accounted for 32.0 (28.1) per cent of Group revenue.

Content revenue decreased by 4.5 per cent to MEUR 110.1 (115.3). Content revenue from digital channels grew by over 40 per cent but the growth did not completely cover the revenue decline of the print subscriptions and single-copy sales.

Revenue from advertising sales decreased by 0.6 per cent to MEUR 146.4 (147.3). Advertising sales comprised of 49.5 (49.1) per cent of the Group’s revenue. Advertising sales for print media decreased by 7.8 per cent from the comparison period to MEUR 73.7 (80.0). Online advertising sales increased by 9.4 per cent to MEUR 72.7 (66.5).

Service revenue increased to MEUR 38.8 (37.6). Service revenue includes items such as Kauppalehti Information Services, the operations of the custom publishing house Alma 360 and E-kontakti and the printing and distribution services sold to customers outside the Group by Alma Manu.

Operating profit and result for the fiscal year 2014

Operating profit excluding non-recurring items decreased by 11.5 per cent to MEUR 21.4, which accounted for 7.2 (8.0) per cent of the Group’s revenue. Operating profit was MEUR 20.7 (27.0), which is equal to 7.0 (9,0) per cent of revenue.

Profit for the fiscal year 2014 decreased to MEUR 15.7 (16.0).

Balance sheet and financing standing

At the end of December 2014, the consolidated balance sheet stood at MEUR 256.1 (270.7). The Group’s equity ratio at the end of December was 42.6 (34.4) per cent and equity per share was EUR 1.17 (1.14).

The consolidated cash flow from operations in October–December was MEUR 6.2 (8.7). Cash flow before financing was MEUR 8.7 (7.5). The consolidated cash flow from operations in January–December was MEUR 26.5 (24.4). Cash flow before financing was MEUR 34.9 (26.7).

At the end of December, the Group’s interest-bearing debt amounted to MEUR 83.0 (109.9). The total interest-bearing debt comprised MEUR 69.5 in finance leasing debt, MEUR 8.5 in loans from financial institutions and MEUR 5.0 in commercial papers.

The Group’s interest-bearing net debt at the end of December stood at MEUR 71.1 (97.6). The decrease in net debt was due to cash flows from business reorganisation, significantly lower investment level and cash flow from operations.

Alma Media did not have financial assets or liabilities created in conjunction with business combinations measured at fair value and recognised through profit or loss on 31 December 2014.

Alma Media has two MEUR 20.0 committed financing limits at its disposal, which were entirely unused on 31 December 2014. In addition, the company has a commercial paper programme of MEUR 100.0 in Finland. Of the commercial paper programme, MEUR 5.0 was in use on 31 December 2014.

Alma Media's share is listed in the mid cap segment of the NASDAQ OMX Helsinki. In other stock exchanges there was very little trade of Alma Media’s shares in 2014.

In January–December, altogether 5,977,028 Alma Media shares were traded at the NASDAQ OMX Helsinki Stock Exchange, representing 7.9 per cent of the total number of shares. The closing price of the Alma Media share at the end of the last trading day of the reporting period, 31 December 2014, was EUR 2.75. The lowest quotation in 2014 was EUR 2.55 and the highest EUR 3.16.  Alma Media Corporation’s market capitalisation at the end of the review period was MEUR 207.6.

 

Dividend proposal to the Annual General Meeting

On 31 December 2014, the Group’s parent company had distributable funds totalling EUR 179,932,379 (23,905,611). No essential changes in the company’s financial standing have taken place after the end of the financial year.

Alma Media’s Board of Directors proposes to the Annual General Meeting that a capital repayment of EUR 0.12 (2013: EUR 0.10) per share be paid from the reserve for invested non-restricted equity for the financial year 2014. Based on the number of shares on the closing date 31 December 2014, the capital repayment totals EUR 9,058,422 (2013: EUR 7,548,685).

Long-term financial targets

Alma Media’s long term financial targets are:

Alma Media’s financial targets

2011

2012

2013

2014

Target level

Digital business growth

16.3%

36.8%

8.4%

11.9%

> 15%

Return on Investment (ROI), %

25.7%

13.8%

10.0%

9.8%

> 15%

Dividend payout ratio*

103%

45%

50%

63%**

> 50%

* Includes capital repayment to shareholders. 

** Based on the Board of Directors’ proposal to the Annual General Meeting.

Financial targets reflect the priorities of Alma Media's strategy and business development. The long-term targets are reached by developing digital media and service business and improving the quality and cost efficiency of publishing activity in an optimal manner, both from the perspective of the company and investors.

Annual Review 2014

Financial Statements 2014

More information